Time Vault Pools

The most common question people ask is where does the upfront yield come from?
Ultimately, Time Vaults use multiple methods of "Pools" to make upfront yield possible. Here are three of the current most used pool types that enable upfront yield.
  • Yield Pools
  • Liquidity Pools
  • Boost Pools

Example #1: Yield Pool

How it works:
  • When Time Vault begins generating yield from it's yield source (Aave, Lido, etc), the yield is redirected into a "Yield Pool"
  • The only way to get the yield out of the Yield Pool is by burning TBDs
  • The amount of yield you can withdraw from Yield Pool is proportional to a user's ownership of TBDs
  • For example: If a user owns 10% of all TBDs from this Time Vault, they have the rights to burn and redeem 10% of all yield in this Yield Pool
  • Available Yield: Generated from previous stakers principal
  • Yield Claim: Burn TBDs
  • Pro: Creates perpetual available yield source
  • Con: Takes time to jumpstart and accumulate.

Example #2: Liquidity Pool

How it works:
  • Individuals can add liquidity to TBD tokens
  • For example: ETH/TBD
  • When a user mints TBDs from a Flashstake, the TBD tokens are sold into this Liquidity Pool.
  • In this model, LPs are providing this upfront yield so they can earn trading and potentially liquidity mining fees.
  • Available Yield: Generated from TBD liquidity providers
  • Yield Claim: Swap TBDs
  • Pro: Creates liquidity for TBDs
  • Con: Must attract LPs

Example #3: Boost Pool

How it works:
  • Anyone can deposits money directly into a Boost Pool
  • For example: Blockzero Labs deposits $1000 USDC into the Aave v3 Time Vault
  • When a user mints TBDs from a Flashstake, the TBD tokens are burned to redeem USDC from the Boost Pool
  • In this model, anyone can subsidize the cost to jumpstart a Time Vault
  • Available Yield: Donated by person or entity
  • Yield Claim: Burn TBDs
  • Pro: Easy to start
  • Con: Donation is an expense